A closely followed crypto analyst believes that one Ethereum (ETH) competitor is gearing up for a massive breakout.
Jamie Coutts, the chief crypto analyst at Real Vision, says that Solana (SOL) is printing a bullish pattern against Bitcoin (BTC) based on the simple moving average (SMA) crossover on the daily chart.
“Solana’s relative strength is quite something. After consolidating against king Bitcoin, it looks like a breakout is on the horizon.”
The analyst shares a chart that suggests the SOL/BTC pair is entering an uptrend after the shorter-term SMA crossed the longer-term SMA, which has signaled rallies in the past.
SOL/BTC is trading for 0.002663 BTC ($172) at time of writing, down more than 1.7% in the last 24 hours.
Next up, the analyst says key metrics suggest Bitcoin is gearing up for a move to the upside, including a rise in open interest, or the total number of outstanding derivatives contracts for a given asset.
“Open interest at new all-time highs (ATHs), but funding is positive/neutral (seven-day average annualized 8.7%). Bitcoin is attempting to break out, and this time aggregate positioning is more balanced.”
He also says Bitcoin’s hash rate is flashing bullish as the 30-day SMA crosses the 90-day SMA.
“Bitcoin hash rate recovery is one of the best signals for network health. A simple 30- and 90-day moving average cross produces: 67% win record, profit factor of 2.18, Sharpe [ratio] 1.88 and Sortino [ratio] 2.64.
HODL outperforms this strategy, but it can be an effective risk management tool for cautious investors. When you regress hash rate and price, it’s clear they are very interdependent. A growing hash rate says BTC is going higher.”
Bitcoin is trading for $64,722 at time of writing, down more than 2% in the last 24 hours.
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